Is it mandatory for NRIs to obtain PAN?

Published : 29 Aug 2021

PAN is a unique 10-digit alphanumeric identification number issued by the Income-tax department to the taxpayers.

It is mandatory for every NRI to obtain PAN:

if he has taxable income; or
if his sales or revenue from business or profession is likely to exceed INR 500,000 in a financial year; or
if he is the Managing Director, Director, Partner, Trustee, Author, Founder, Chief Executive Officer, Principal Officer
if he is entitled to receive any income which is subject to TDS or TCS in any financial year
if he intends to enter the following transactions:

Nature of Transactions	Transactions Value
Sale or purchase of Motor Vehicle (except two wheeler)	All Transactions
Opening a Bank account and a demat account	All Transactions
Application for credit or debit card	All Transactions
Payment to Mutual Funds	Exceeds INR 50,000
Deposits – Banks, Co-operative Banks	Exceeds INR 50,000 (one day)
Terms Deposit – Banks, Post Office, NBFC	Exceeds INR 50,000 (single) or INR 500,000 (in total)
LIC Premium	Exceeds INR 50,000
Sale or Purchase of shares of a Private Limited Company	Exceeds INR 100,000
Sale or Purchase of any immovable Property	Exceeds INR 100,000

There may be certain situations wherein a NRI is unable to quote his PAN in the specified transactions as referred to in above table since he does not have taxable income in India. In such situation, he can make a declaration in Form 60 with particulars of such transaction.

Penalty consequences relating to PAN: